World Bank’s roadmap to mitigate the impact of the war in Ukraine on developing countries
ISLAMABAD: The World Bank Group (WBG) has developed a roadmap outlining a targeted medium-term approach covering 15 months until the end of June 2023 to respond to the crisis following the war in Ukraine for an amount of $170 billion.
This roadmap will help developing countries cope with the human and development setbacks caused by worsening crises – impacts of war, including food and fuel price shocks, and trade disruptions, supply chains and foreign direct investment, the Covid-19 pandemic and climate change.
According to the document titled ‘Global Impacts of the War in Ukraine’, seen by Dawn, WBG management will explore with its board of directors the establishment of a 15-month crisis response envelope of around 170 billion. dollars for the period of April 2022 and June 2023.
Together with its development partners, the WBG’s rapid crisis response will provide targeted support to developing countries as they deal with the impacts of war. In addition to addressing the impact of the war in Ukraine, the proposed top-up funding will support the WBG’s high-impact support to respond to the Covid-19 pandemic, accelerate climate change adaptation and mitigation , as well as promoting sustainable economic recovery through the GRID. Strong partnerships at the international and national levels will be integral to the WBG’s crisis response and client engagement.
Plan to include increased support for Ukraine and countries hosting refugees; address food vulnerabilities
In the last quarter of fiscal year 2022 (April-June), the World Bank Group intends to prioritize an initial response to the crisis with total commitments of approximately $50 billion.
The WBG’s initial response will include increased support to Ukraine, countries hosting Ukrainian refugees, and the wider developing world to address the effects of the crisis on the poor and vulnerable. This will build on the results obtained as part of the response to the Covid-19 crisis.
While supporting needs arising from the war in Ukraine, the WBG will encourage a sustained focus on longer-term development priorities that are integral to achieving the WBG’s twin goals of eradicating extreme poverty and promoting shared prosperity in a sustainable way.
Food prices in real terms are rising rapidly in the context of current and projected supply constraints. It is essential to avoid aggravating the situation by imposing export restrictions and price controls. Enabling market access and protecting the population against food vulnerabilities through social transfers are at the heart of the WBG’s response.
The WBG’s medium-term response, including surge funding to facilitate strong client engagement and respond to increased client demand across the WBG client base, will be defined in a response framework document. crisis to be presented to the Board by the end of June 2022, the document said.
The ongoing impacts of the war in Ukraine demand decisive action to protect the poor and vulnerable, strengthen the response capacity of developing countries and reinvigorate longer-term development goals in a beleaguered world. to worsening crises.
Commodity price shocks have differential impacts across regions as well as across and within countries depending on existing policies, institutions and levels of inequality.
World Bank estimates for South Asia point to lower real income growth due to war – 1.3 percentage points due to slower GDP growth and one percentage point due to terms of trade losses. The immediate impacts of the war in Ukraine on food security concern countries heavily dependent on Ukrainian and Russian imports and more broadly importers given the sharp increase in world wheat prices.
Posted in Dawn, April 25, 2022